Elementos (ASX: ELT) has defined oxide and porphyry copper targets at the company's newly acquired Mercedes Project, with initial drilling planned for the June quarter.
Mercedes is located within the Atacama region in northern Chile, the world's foremost copper producing region which hosts a number of world class porphyry deposits.
A 3,300 kilometre airborne geophysics survey has defined porphyry bodies and located the extensions of known mineralised structures. This work allows Elementos to define the structural framework to model the controls on the mineralisation.
Mapping and sampling programs are continuing over the porphyry copper prospect at Elvira and the copper oxide targets at Mecha. Recent rock chip samples at the Mecha prospect returned up to 2.7% copper and 35 grams per tonne (g/t) silver.
Results from Elvira indicate that the prospect represents a high level in a porphyry system. Elementos is planning a ground penetrating Pole-dipole induced polarisation survey at Elvira to define targets for a drill program, which is planned to begin this quarter, subject to rig availability.
Adding even more spice to Mercedes, it is strategically located just 60 kilometres east of the world-class Chiquicamata mining district. The area has top quality exploration, mining and development infrastructure.
The Chuquicamata district is well supported with infrastructure, including port facilities at Antofagasta, 280 kilometres southwest of the project area, a copper oxide toll treatment facility, 35 kilometres west of Mercedes, and an electricity distribution network.
Elementos will investigate water availability options including purchasing water from existing operators, acquiring water rights, and exploration drilling for aquifers at the Andean foothills in the eastern side of the project area.
In February 2012 Elementos secured an option to acquire a 90% interest in the Mercedes copper project.
Elementos is acquiring the Mercedes project through a series of options over four years, for a total consideration for the acquisition comes to $10 million.
The company is now responsible for managing and funding all exploration, evaluation and development of Mercedes.